Coast Hotels plans to amend or replace its loan to increase availability

By Sara Rosenberg

New York, Nov. 14 - Coast Hotels & Casinos Inc. anticipates amending or replacing its existing credit facility in order to increase availability and permitted capital expenditures. The reason behind this decision is that current borrowings available to the company are not expected to sufficiently cover the company's capital expenditure plans through the first quarter of 2003, according to a filing with the Securities and Exchange Commission.

Cash requirement for the next 12 months include the payment of principal and interest on debt, maintenance capital expenditures, the possible purchase of land adjacent to the Barbary Coast casino, the completion of the expansion and remodeling project at the Gold Coast, the completion of the special events arena at The Orleans and the expansion of the Suncoast.

The Las Vegas hotel and casino company will need to delay the Suncoast expansion and possibly other capital expenditures if an amendment or a new facility is not obtained, the filing said.

At Oct. 31, the company had $131.0 million outstanding under the credit facility, with $36.5 million of remaining availability. On Dec. 31, availability will be reduced to $159 million, with additional quarterly reductions of $8.5 million on each of March 31, 2003 and June 30, 2003, and of $11.5 million on each of Sept. 30, 2003, Dec. 31, 2003, March 31, 2004 and June 30, 2004.

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